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Supply Chain Graphic of the Week: The Value of Multi-Tier Supply Chain Collaboration


The Value is there, McKinsey Says,but there are Three Key Barriers


July 15, 2021

There is a lot of potential available from multi-tier supply chain collaboration, "with suppliers responsible for 80%of total product value in industries such as automotive, supplier cost, quality, innovation, and delivery performance remain critical to business success."


So say the consultants at McKinsey is a recent article on the company's web site.


McKinsey chose to illustrate that potential in the graphc below:



It's a little tough to absorb.


McKinsey say there are three key barriers to such collaboration: integration technology; the operating model (standards for the exchange of more complex data); and trust.



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